Crypto asset manager Valkyrie Investments says it is interested in sponsoring and managing Grayscale’s publicly traded Bitcoin (BTC) fund.
In a new statement, Valkyrie co-founder Steve McClurg announces the firm’s proposal to take over the Grayscale Bitcoin Trust (GBTC) as shares of the world’s largest Bitcoin fund trade below 45% the spot price of BTC.
According to McClurg, its newly-launched Valkyrie Opportunistic Fund wants to take advantage of GBTC’s discounted price relative to the underlying value of Bitcoin.
“As the fund increases its holdings of GBTC, we are very interested in realizing the true value of the underlying bitcoin for our investors and will actively pursue this goal on their behalf.”
The crypto executive also proposes a plan to improve the current management of GBTC, which includes allowing investors to redeem their shares at a fair price without delays and obstacles, in addition to lowering fees from the current 200 basis points to 75 basis points and offering share redemptions in Bitcoin and cash.
“Our proposal represents a significant improvement over the current management of GBTC… We are committed to putting the interests of GBTC shareholders first, and we have the experience and expertise to do so effectively.”
Valkyrie’s proposal comes as Grayscale’s parent company Digital Currency Group faces liquidity issues after one of its subsidiaries, crypto lender Genesis, suspended withdrawals due to the bankruptcies that hit the crypto industry last year. According to McClurg, the situation calls for a change in the management of GBTC.
“In light of recent events involving Grayscale and its family of affiliated companies, it is time for a change. Valkyrie is the best company to manage GBTC to ensure its investors are treated fairly.”
In December, Grayscale reportedly said it is considering selling some of its capital back to investors if it fails to secure the U.S. Securities and Exchange Commission’s approval to convert GBTC into an exchange-traded fund.
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